Market Roundup
• German 5-Year Bobl Auction 2.040%, 2.130% previous
• UK CBI Distributive Trades Survey (Nov) -18,-14 forecast,-6previous
• Sweden PPI (MoM) (Oct) 0.5%,-1.8% previous
• Sweden PPI (YoY) (Oct) -1.3%,-2.3% previous
Looking Ahead Economic Data(GMT)
•13:30 Canada Wholesale Sales (MoM) (Oct) 0.9% forecast, 0.8% previous
•13:55 US Redbook (YoY) 5.1% previous
•14:30 US House Price Index (YoY) (Sep) 4.2% previous
•14:30 US House Price Index (MoM) (Sep) 0.3% forecast, 0.3% previous
•14:30 US House Price Index (Sep) 427.0 previous
•14:30 US S&P/CS HPI Composite - 20 s.a. (MoM) (Sep) 0.4% previous
•14:30 US S&P/CS HPI Composite - 20 n.s.a. (MoM) (Sep) -0.3% previous
•14:30 US S&P/CS HPI Composite - 20 n.s.a. (YoY) (Sep) 4.7% forecast, 5.2% previous
•15:00 US CB Consumer Confidence (Nov) 111.8 forecast, 108.7 forecast
•15:00 US New Home Sales (MoM) (Oct) 4.1% previous
•15:00 US New Home Sales (Oct) 725K forecast, 738K previous
•15:00 US Richmond Manufacturing Index (Nov) -10 forecast, -14 previous
•15:00 US Richmond Manufacturing Shipments (Nov) -8 previous
•15:00 US Richmond Services Index (Nov) 3 previous
•15:30 US Dallas Fed Services Revenues (Nov) 9.2 previous
•15:30 US Texas Services Sector Outlook (Nov) 2.0 previous
Looking Ahead Events And Other Release(GMT)
•15:00 BoE MPC Member Pill Speaks
Currency Forecast
EUR/USD: The Euro edged higher after dropping to two-year lows on Tuesday as investors remained wary about persistent economic struggles in Europe and increasing concerns about the potential consequences of a second Donald Trump administration . President-elect Donald Trump said he would impose tariffs on products coming into the United States from Mexico. Hours after Trump's Truth Social post, German economy minister Robert Habeck said the EU must seek talks with the US to avert a potential trade war. A week before the presidential election, Trump said the EU would have to "pay a big price" for not buying enough American exports if he was elected. Immediate resistance can be seen at 1.0463(38.2%fib), an upside break can trigger rise towards 1.0520(50%fib).On the downside, immediate support is seen at 1.0400`(23.6%fib), a break below could take the pair towards 1.0326(Daily low)
GBP/USD: The pound remained mostly unchanged on Tuesday, relatively unaffected after U.S. President-elect Donald Trump’s threat to increase tariffs on Canada, Mexico, and China caused volatility in currency markets. Sterling initially weakened following Trump's comments, reflecting its status as a risk-sensitive currency that tends to decline during times of economic uncertainty. However, it later regained some ground, rising 0.1% to $1.2587. Trump on Monday evening in the United States said he would impose a 25% tariff on imports from Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border. Immediate resistance can be seen at 1.2612(38.2%fib), an upside break can trigger rise towards 1.2721(50%fib).On the downside, immediate support is seen at 1.2488 (23.6%fib), a break below could take the pair towards 1.2400(Psychological level)
AUD/USD: The Australian dollar recovered from initial decline on Tuesday as currencies bounced around as markets digested Trump's comments. U.S. President-elect Donald Trump stepped up his threat to slap hefty tariffs on Canada, Mexico and China . U.S. President-elect Trump, set to take office in January, plans to impose a 25% tariff on imports from Canada and Mexico, along with an additional 10% tariff on China, exacerbating concerns and dampening the positive market sentiment sparked by the nomination of Scott Bessent as U.S. Treasury Secretary. Immediate resistance can be seen at 0.6555(38.2%fib), an upside break can trigger rise towards 0.6564(SMA 21).On the downside, immediate support is seen at 0.6481(Nov 19th low), a break below could take the pair towards 0.6389(April 16th low).
USD/JPY: The dollar eased against the yen on Tuesday as Japanese yen strengthen amid U.S. tariff worries. U.S. President-elect Donald Trump on Monday pledged big tariffs on the United States' three largest trading partners - Canada, Mexico and China detailing how he will implement campaign promises that could trigger trade wars. The Japanese government maintained its assessment that the economy is recovering moderately on Tuesday, while cautioning about the potential impact of U.S. President-elect Donald Trump's policies on the economic outlook. Investors now await the minutes of the Federal Reserve's November policy meeting due later in the day for cues on policymakers' thinking about the future path of policy rates. Immediate resistance can be seen at 155.28(38.2%fib) an upside break can trigger rise towards 156.00(Psychological level). On the downside, immediate support is seen at 153.98(50%fib) a break below could take the pair towards 153.63(21SMA).
Equities Recap
European shares declined across the board on Tuesday, with automakers leading the losses, as Donald Trump's tariff threat against the U.S.'s largest trading partners raised concerns that the European Union could face similar repercussions in a potential global trade war.
At (GMT 12:38),UK's benchmark FTSE 100 was last trading down at 0.15 percent, Germany's Dax was down by 0.20 percent, France’s CAC was last down by 0.18 percent.
Commodities Recap
Gold prices edged up on Tuesday, having touched their lowest in over a week earlier in the session as safe-haven demand for the metal eased on optimism about a potential ceasefire between Israel and Hezbollah militants in Lebanon.
Spot gold was up 0.3% to $2,633.99 per ounce, as of 1217 GMT, after earlier hitting its lowest since Nov. 18. U.S. gold futures were up 0.6% to $2,634.10.
Oil prices rose on Tuesday, steadying after falling more than $2 a barrel in the previous session on reports of a potential ceasefire between Israel and Lebanon's Hezbollah.
Brent crude futures were up 53 cents, or 0.7%, at $73.54 a barrel as of 1231 GMT. U.S. West Texas Intermediate crude futures were at $69.46 a barrel, up 52 cents, or 0.75%.
